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Create Tax Rates for Square Online

DISCLAIMER: Tax compliance is your responsibility. We do not guarantee the applicability or accuracy of our tax tools. If you have any questions about your tax obligations, you should consult a professional tax advisor.

The tax tools built into your online store help simplify setting up and managing tax rates. Customers in the United States can take advantage of the automatic tax calculator for US shipments. Canadian customers can use the pre-populated country and province taxes, and customers in other locations can manually add tax rates by country.

Automatically Calculate US Tax Rates

The first step is to configure your store for sales tax. You’ll want to check that your business addresses are added and that any non-taxable items have been marked as exempt. Learn more abouttax rates. Once set up for sales tax:

  1. Go to the Square Online Overview page.

  2. Select Settings > Taxes. If you've already added shipping rates, you’ll see them listed.

  3. Click Set Up next to a region, or use the Add Tax Rate button if you haven’t set up shipping rates.

  4. Enable the checkbox to Automatically calculate taxes.

  5. You can view the tax rates for any state where you have a physical presence and need to collect sales tax. Click View to see specific rates charged for each zip code in that state.

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Note: You must have a valid US address (store, shipping, etc.) in order to use the calculator.

Edit Tax Rates

To manually edit tax rates:

  1. Go to the overSquare Online Overview page

  2. Select Settings > Taxes.

  3. Click Edit for any province or territory that you want to manually edit the tax rates or settings.

Once here, you can change the tax rate by entering a new amount in the Tax Rate field, change the tax name by entering a new Name, change the rule, add to the country tax, charge instead of a country tax or select Compound to have the rate calculated based on the total of the order plus the state tax.

Create Canadian Tax Rates

Taxes are pre-populated for Canadian provinces and territories. These can be overridden if needed using Edit.

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To create Canadian tax rates:

  1. Go to the Square Online Overview page.

  2. Select Settings > Taxes.

  3. Click Add Tax Rate. If you’ve already added shipping rates for Canada, click Set Up.

  4. Adjust the country tax rate by entering a new amount in the Country Tax Rate field. 

  5. Click Edit for any province or territory that you want to manually add a tax rate for.

  6. Click Save when finished or Reset to Default to start over.

Create Tax Rates for Other Countries

Taxes for areas outside of the US and Canada are charged at the country level only, and must be created manually. The tax rates should be configured based on where the buyer of the goods or services is located.

To create taxes for other countries:

  1. Go to the Square Online Overview page.

  2. Select Settings > Taxes.

  3. Click Add Tax Rate or if you already have a shipping rule for the country, click Set Up.

  4. Select a country from the dropdown menu and enter the Country Tax Rate

  5. Add a Name for the tax rate, and click Save to apply your changes.

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